KeppelFELS chances of getting Grupo R to accept delivery of the three jackups they have under construction by the end of 2017 as planned do not look too rosy. All three rigs, Cantarell III, Cantarell IV and Cantarell V, were to be originally delivered in 2016. Grupo R has revealed that they cannot obtain financing until they have an acceptable signed contract for each unit. Grupo R are already paying KFELS an additional 4% of the balance due on each rig which is being paid quarterly and it is likely they will extend this deal beyond end 2017.
Back in June Singapore’s Falcon Energy cancelled three of the four construction contracts that its subsidiary FTS Derricks had with Shanghai-guan shipyard. The fourth rig, TS Jade, also a GustoMSC CJ-50 design unit, remained under discussion. Now the shipyard has decided it will cancel the fourth rig after discussions with Falcon revealed they would not be able to provide funding for the rig. The four rigs, including TS Coral, TS Emerald, and TS Opal, were all ordered in 2013. The rigs are insured by China Export & Credit Insurance Corp so the shipyard will have 95% of its losses covered [...]
KeppelFELS have reached an agreement with SapuraKencana Drilling to further defer the deliveries of two semi-tender assist rigs currently under construction, SKD Kinabalu and SKD Raiqa. Originally set for deliv-ery in 2017, the dates were pushed back into 2019 and have now been pushed back further to 2020. The yard has been compensated for the delays. SKD Kinabalu, originally KM3, is a Frigstad T70 design rig originally ordered from Kencana shipyard in Malaysia back in 2011. In 2014 it was announced that due to serious construction delays the unfinished rig would be moved to another shipyard to complete construction and [...]
Keppel Corporation announced falling revenue in Q2 for its Offshore and Marine divi-sion, a drop of S$271m due to a lower volume of work and deferment of some projects. KFELS net order book currently stands at US$2.5bn though this does not include the Sete Brasil semis.
Atwood UDW semi Atwood Condor has completed its mobilization from the US Gulf and has entered KeppelFELS shipyard in Singapore for modifications and contract preparation prior to its next charter with Woodside in the Greater Enfield project offshore Australia, scheduled to start in early 2018. The rig is to add a second BOP stack and will be modified to incorporate a mooring system alongside its DP capability. The rig is contracted through to July 2019.
KNOC have given up on trying to flog their mid water semi Doo Sung as a drilling rig after two auctions failed to receive offers at their reserve price level. They are currently considering selling the 1984 built F&G L-907 design unit in non drilling mode or as scrap and are evaluation the legal ramifications of such a move before inviting bids again. The rig remains stacked at KFELS yard in Singapore.
Jackup Maersk Completer is due for its 5 year SPS and in order to avoid any drilling down time the two parties have agreed that sister rig Maersk Convincer will assume the remaining contract term on the Completer contract. The switch is expected to occur in August or September. Maersk Convincer has been stacked in Labuan since November 2015 and will now be contracted until October 2018 with Shell holding options for a further 3 years. Maersk Convincer meanwhile has entered drydock in KeppelFELS yard in Singapore where it will complete its SPS, expected to last 2 months, before departing [...]
Atwood UDW semi Atwood Condor is still en route, currently rounding South Africa, and is being wet towed to the region from the Gulf of Mexico. It is due to arrive in Singapore in July. The rig is expected to enter KeppelFELS yard where it will undergo preparatory work prior to mobilizing to Australia in December to begin its charter with Woodside schedule for a January start.
Merger talks between the two big Singapore shipyards, KeppelFELS and Sembcorp Marine, mooted for some time, are rumoured to now be underway. Should this happen the com-bined shipyards will have a dominant position on jackups designs with LeTourneau, KFELS own designs and BMC all under the same stable. This would leave China as the main competition with agreements in place in many shipyards, to build Friede And Goldman and GustoMSC design units.